Bankruptcy may be a good option. Using a Lawyer with experience may be wise.
A means test is used only when most of an individuals debt is consumer debt. It looks at the means of an individual to determine if filing a Chapter 7 Bankruptcy would be an abuse of the bankruptcy laws. A means test is also used to help determine how much would have to be paid to unsecured creditors in a Chapter 13 Bankruptcy.
WHY FILE FOR BANKRUPTCY?
A new start for the honest debtor is the stated purpose for bankruptcy. Income is far less stable than debt. My experience has taught me that optimism about the future is a primary cause of bankruptcy. But there is nothing wrong with optimism, even if things didn't happen as expected. If you can benefit from a fresh start, call today to begin a life without creditor calls, late payment fees,wage garnishments, foreclosure proceeding, and most importantly, the stress that accompanies financial instability. We are here to facilitate the process for you.
THE AUTOMATIC STAY
The first usual benefit of filing a bankruptcy petition under either Chapter 7 or Chapter 13 is the law which requires an automatic stay, which stops most collection efforts while the bankruptcy case is pending. As the name implies, the stay is automatic and comes into existence immediately upon filing the petition. The automatic stay is temporary, assuming there hasn't been any prior court orders or bankruptcy filings affecting the stay, and that the bankruptcy filing is valid, then an automatic stay usually STOPS:
Creditor Phone Calls
Acts to perfect a lien
Driver's license suspension under FL. financial responsibility law.
The stay provides protection from most creditors during the bankruptcy process. If and when a discharge is entered, the stay is replaced by a permanent injunction against attempts to collect debts that have been discharged.
If a Chapter 7 or Chapter 13 Bankruptcy Petition is filed, a Trustee will be assigned to the case. An important function of a Trustee is to administer the bankruptcy estate. In a Chapter 7, that means liquidating the non-exempt assets, if any, and paying creditors their share with the funds from liquidation. In a Chapter 13, the Trustee collects the Chapter 13 Plan payments and distributes the funds to the creditors pursuant to a confirmed plan.
The Trustees do have other functions and may file various motions in the case. The Trustees working the cases in the Tampa Division are, in my opinion, good people who attain to be fair and unbiased. But they have a job to do, and their view of what should be done may be different from your view or the lawyer's view. Consequently, a Trustee in bankruptcy can be like a built-in adversary. An experienced attorney is usually able to resolve issues with the Trustee, and more importantly, prevent issues from arising in the first place.
A discharge in bankruptcy terminates the legal obligation to pay the debts that are discharged. It also prevents creditors from making any attempts to collect discharged debts. However, liens are not discharged. It is only the personal obligation to pay that may be discharged.
If you are considering arranging your own affairs or filing a bankruptcy petition on your own behalf, consult with an attorney that deals with bankruptcy issues on a regular basis. We offer free initial phone consultations. Mistakes can be costly and may exceed the fees charged by an attorney. What may seem to be good bankruptcy planning by one may be called bankruptcy fraud by another.
An attorney admitted to practice in the Bankruptcy Court where you file is expected to represent you in court and at the meeting of the creditors. A non-lawyer bankruptcy petition preparer cannot represent you.
1. For Individuals as well as Businesses.
2. It eliminates most unsecured debt.
3. It's a liquidation in nature so it's best for Individuals with few assets or assets that can be exempt.
4. Must look at a Chapter 7 means test to help ensure it's not an abuse of the Bankruptcy code to file a Chapter 7.
5. If your income is not above the median for your state, you will not have to complete part 2 of the Chapter 7 Means Test Calculation.
1. For Individuals with regular monthly income.
2. It's primarily for individuals who can afford to pay something towards their unsecured debt.
3. It is a repayment plan and unsecured creditors may get a pro-rated share that ranges from
0% - 100% of their claim.
4. Allows for the curing of a default of a secured debt such as a mortgage.
5. The length of the plan may very but they are typically 60 months.
6. May be very helpful to save your home when you are facing foreclosure if you can cure your default within 60 months.
7. Must look at a Chapter 13 means test to determine what disposable income should be paid to the unsecured creditors.
Robert N Zimmerman, Jr. Lawyer and Attorney at Law
1104 N parsons Ave., Ste. C, Brandon, FL 33510 US
The author of this website is a lawyer licensed to practice in the state of Florida and the U.S. District Court, Middle District of Florida. It is against the law and it is unethical to provide legal advice or otherwise practice law in a venue where the attorney is not licensed. All of the bankruptcy information contained in this website is provided for educational purposes only. Please bear in mind that state law effects bankruptcy issues. General education helps people understand bankruptcy, but it is not a substitute for legal advice by a competent attorney who is licensed by the state and practices within the jurisdiction of the Court where a person files for bankruptcy. Further, not all Bankruptcy Courts interpret the U.S. Bankruptcy Code the same way. Consequently, attorneys familiar with the Court where the petition is filed is important.
The decision to hire an attorney is an important matter that should not be made on the basis of advertisements alone. We are a debt relief agency. Offices in Brandon, Florida .